FDA cracking down on e-cigarettes

So why are e-cig makers' stocks soaring?

Dreamstime/TNS
Makers of some e-cigarette brands saw their stocks jump Wednesday after the FDA announced a crackdown on the products over concerns about how popular they’ve become among children.

Los Angeles Times

It’s bad for business when regulators target one of your fastest-growing products — unless they also go after a competitor working to put you out of business.

That, in essence, is why the makers of some e-cigarette brands saw their stocks jump Wednesday after the U.S. Food and Drug Administration announced a crackdown on the products over concerns about how popular they’ve become among children.

The federal intervention — requiring e-cig makers to come up with detailed plans for curbing sales to minors or risk having their products pulled from the market — could be very bad news for Juul, the hot San Francisco company that almost overnight became the market leader in e-cigarettes.

That means it could be good news for Big Tobacco companies including Altria, Imperial Brands and British American Tobacco.